Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment. Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Problem 12-6A (Algo) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 2025 $3,495,000 2,477,000 1,018,000 times times 952,000 27,000 0 16,500 7,700 1,003,200 14,800 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,021,000 1,947,000 1,074,000 times times % 855,000 25,500 7,700 13,500 46,500 948,200 125,800 2025 $199,500 73,500 123,500 13,700 102,000 297,000 297,000 (91,500) $1,014,700 $213,600 8,100 11,700 370,000 297,000 114,300 $1,014,700 2024 $183,000 78,000 102,000 11,700 102,000 207,000 267,000 (64,500) $886,200 $63,000 5,400 13,500 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 282,000 297,000 225,300 $886,200 2023 $141,000 57,000 132,000 5,640 0 237,000 207,000 (39,000) $740,640 $105,740 2,700 13,700 222,000 297,000 99,500 $740,640
Income statements and balance sheets data for Virtual Gaming Systems are provided below. Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income VIRTUAL GAMING SYSTEMS Income Statements For the Years Ended December 31 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment. Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Problem 12-6A (Algo) Part 1 Receivables turnover ratio Inventory turnover ratio Current ratio Debt to equity ratio Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 2025 $3,495,000 2,477,000 1,018,000 times times 952,000 27,000 0 16,500 7,700 1,003,200 14,800 % VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2025 2024 $3,021,000 1,947,000 1,074,000 times times % 855,000 25,500 7,700 13,500 46,500 948,200 125,800 2025 $199,500 73,500 123,500 13,700 102,000 297,000 297,000 (91,500) $1,014,700 $213,600 8,100 11,700 370,000 297,000 114,300 $1,014,700 2024 $183,000 78,000 102,000 11,700 102,000 207,000 267,000 (64,500) $886,200 $63,000 5,400 13,500 Required: 1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to 1 decimal place.) 282,000 297,000 225,300 $886,200 2023 $141,000 57,000 132,000 5,640 0 237,000 207,000 (39,000) $740,640 $105,740 2,700 13,700 222,000 297,000 99,500 $740,640
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 4EP
Related questions
Question
Transcribed Image Text:Problem 12-6A (Algo) Part 2
2. Calculate the following profitability ratios for 2024 and 2025: (Round your answers to 1 decimal place.)
Gross profit ratio
Return on assets
Profit margin
Asset turnover
2024
%
times
2025
%
%
%
times
![Required information
Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4)
[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
Net sales
Cost of goods sold.
Gross profit
Expenses:
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
Assets
Current assets:
Cash
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
Accounts receivable.
Inventory
Prepaid rent
Long-term assets:
Investment in bonds.
Land
Equipment.
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Problem 12-6A (Algo) Part 1
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
Stockholders' equity:
Common stock
Retained earnings.
Total liabilities and stockholders' equity
2024
2025
$3,495,000
2,477,000
1,018,000
times
times
952,000
27,000
0
16,500
7,700
1,003,200
14,800
%
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
$3,021,000
1,947,000
1,074,000
times
times
%
855,000
25,500
7,700
13,500
46,500
948,200
125,800
2025
$199,500
73,500
123,500
13,700
102,000
297,000
297,000
(91,500)
$1,014,700
$213,600
8,100
11,700
370,000
297,000
114,300
$1,014,700
2024
$183,000
78,000
102,000
11,700
102,000
207,000
267,000
(64,500)
$886,200
$63,000
5,400
13,500
282,000
297,000
225,300
$886,200
2023
Required:
1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to
1 decimal place.)
$141,000
57,000
132,000
5,640
0
237,000
207,000
(39,000)
$740,640
$105,740
2,700
13,700
222,000
297,000
99,500
$740,640](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01074652-25fb-4a10-a179-5df826ed6812%2Fb40b9d51-db8b-4ac9-87ee-badaffe57c49%2Fw3frkwo_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 12-6A (Algo) Use ratios to analyze risk and profitability (LO12-3, 12-4)
[The following information applies to the questions displayed below.]
Income statements and balance sheets data for Virtual Gaming Systems are provided below.
Net sales
Cost of goods sold.
Gross profit
Expenses:
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
Net income
Assets
Current assets:
Cash
VIRTUAL GAMING SYSTEMS
Income Statements
For the Years Ended December 31
Accounts receivable.
Inventory
Prepaid rent
Long-term assets:
Investment in bonds.
Land
Equipment.
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Problem 12-6A (Algo) Part 1
Receivables turnover ratio
Inventory turnover ratio
Current ratio
Debt to equity ratio
Stockholders' equity:
Common stock
Retained earnings.
Total liabilities and stockholders' equity
2024
2025
$3,495,000
2,477,000
1,018,000
times
times
952,000
27,000
0
16,500
7,700
1,003,200
14,800
%
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2025
2024
$3,021,000
1,947,000
1,074,000
times
times
%
855,000
25,500
7,700
13,500
46,500
948,200
125,800
2025
$199,500
73,500
123,500
13,700
102,000
297,000
297,000
(91,500)
$1,014,700
$213,600
8,100
11,700
370,000
297,000
114,300
$1,014,700
2024
$183,000
78,000
102,000
11,700
102,000
207,000
267,000
(64,500)
$886,200
$63,000
5,400
13,500
282,000
297,000
225,300
$886,200
2023
Required:
1. Assuming that all sales were on account, calculate the following risk ratios for 2024 and 2025: (Round your answers to
1 decimal place.)
$141,000
57,000
132,000
5,640
0
237,000
207,000
(39,000)
$740,640
$105,740
2,700
13,700
222,000
297,000
99,500
$740,640
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